The European Commission’s proposal to introduce mandatory public country-by-country reporting for multinational groups will need to be debated in a plenary session of the EU Parliament before it can be put to the Council, following an inconclusive vote in the Parliament’s Economic and Monetary Affairs (ECON) and Legal Affairs committees on 12 June.
The ECON committee agreed in February to extend the scope of the original proposal to include activities worldwide, rather than just in the EU, and to require a breakdown for each country in which companies operate, in place of aggregated data.
A further amendment had been put forward which would allow companies to apply for an exemption from the obligation to report certain details in order to protect commercially sensitive information.
Although the committees approved a draft report on the amendments, this was not passed by a sufficient majority to take forward to the Council, meaning it will need to be debated by the full EU Parliament before progressing.
The European Commission submitted its original proposal in April 2016 for an amendment to the EU accounting directive to introduce public country-by-country reporting, intended to complement the introduction of country-by-country reporting to EU tax authorities.
The European Commission’s proposal to introduce mandatory public country-by-country reporting for multinational groups will need to be debated in a plenary session of the EU Parliament before it can be put to the Council, following an inconclusive vote in the Parliament’s Economic and Monetary Affairs (ECON) and Legal Affairs committees on 12 June.
The ECON committee agreed in February to extend the scope of the original proposal to include activities worldwide, rather than just in the EU, and to require a breakdown for each country in which companies operate, in place of aggregated data.
A further amendment had been put forward which would allow companies to apply for an exemption from the obligation to report certain details in order to protect commercially sensitive information.
Although the committees approved a draft report on the amendments, this was not passed by a sufficient majority to take forward to the Council, meaning it will need to be debated by the full EU Parliament before progressing.
The European Commission submitted its original proposal in April 2016 for an amendment to the EU accounting directive to introduce public country-by-country reporting, intended to complement the introduction of country-by-country reporting to EU tax authorities.
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